A recent report by the TPI shows that more than 80% of companies will not be able to meet the Paris Agreement target of limiting global warming to well below 2°C. Pictured here waves hit the shore as Tropical Storm Karen approaches in Puerto Rico. Photo: Bloomberg

SKAGEN has become a supporter of the Transition Pathway Initiative (TPI), an investor-led initiative to assess companies’ preparedness for the transition to a low-carbon economy.

A recent report by the TPI shows that more than 80% of companies will not be able to meet the Paris Agreement target of limiting global warming to well below 2°C. Pictured here waves hit the shore as Tropical Storm Karen approaches in Puerto Rico. Photo: Bloomberg

TPI provides investors with data on the carbon performance and climate governance of the world’s largest listed companies in high emitting sectors. Developed with investors in mind, TPI provides an online tool with data to support investment research and enable better-informed and more effective investment processes, engagement activities and proxy voting decisions.

The TPI tool will be central to our engagement with companies that are responsible for material carbon emissions.

"The TPI will support SKAGEN's efforts to further integrate and manage climate change related risk and opportunities in our investment activities. SKAGEN will use the TPI tool as a reference point to collaborate with companies on the areas they need to improve on in order to be part of a sustainable future," says CIO Alexandra Morris.

Data from the TPI will enable SKAGEN as an investor to monitor and measure progress in line with the transition to a low-carbon economy.

"The TPI tool will be central to our engagement with companies that are responsible for material carbon emissions. We recognise the scale of the transition required and it is important that we do not delay taking action. We need to push for action by the companies in which we are invested and start measuring and reporting on progress towards these goals now," says ESG Specialist Sondre Myge Haugland.

A recent report* by the TPI shows that almost 40% of companies are unprepared for the transition to a low-carbon economy. The same report indicates that more than 80% of companies will not be able to meet the Paris Agreement target of limiting global warming to well below 2°C.

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